Friday, June 8, 2018

Trump Calls for Russia to be Reinstated Into G-7

The remarkably inconsistent President Trump said this morning that Russia should be readmitted to the Group of Seven leading economies, breaking with other world leaders who have insisted that Moscow remain out after its 2014 annexation of Crimea.

“Now, I love our country. I have been Russia’s worst nightmare. . . . But with that being said, Russia should be in this meeting,” Trump said Friday as he left the White House. “It may not be politically correct, but we have a world to run. . . . They should let Russia back in.”

Free trade is a good thing and so since Russia in the G7 (G8?) would be a step in the direction of expanded trade with Russia, Trump's call here should be cheered, although the G7 is about managed trade rather than total free trade.

Many businessmen are not the slighted bit interested in free trade; they're interested in beating the competition, and if renting the state's coercive powers is available to them (through lobbying for protective tariffs, favorable regulations, subsidies, etc.), they will take full advantage of it.

What's the difference? Its not as if Germany isn't going to buy lots of Russian natural gas, heck another pipeline is been constructed right now, Nord Stream 2, goes from Russia to Germany via the seabed.